Friday, 29 April 2016

A high ranking court official yesterday confirmed that the authorities are taking steps to list the matter of the former head of the Financial Services Regulatory Commission (FSRC), Leroy King, for hearing in the High Court “as soon as possible” as the US Department of Justice (USDOJ) continues to make enquiries about the status of King’s extradition process.

The matter has been stalled in the system for nearly four years since King filed his last challenge against the decision of the Minister of External Affairs, former prime minister Baldwin Spencer to sign the warrant to return him to the US to face charges linked to the R Allen Stanford US $7 billion Ponzi Scheme.

High Court Registrar Cecile Hill said the delay in the matter wasn’t a deliberate act, but there were challenges that had to be addressed.................

Thursday, 14 April 2016

On March 7, 2016, the Receiver and the Official Stanford Investors Committee filed a Motion seeking Court Approval of a settlement entered into with Kroll, LLC (f/k/a Kroll, Inc.) and Kroll Associates, Inc. (collectively, “Kroll”). Pursuant to the terms of the settlement, the Receivership Estate will receive $24.0 million. On March 23, 2016, the Court entered a Scheduling Order setting a hearing on the Motion to Approve the Settlement and establishing a scheduling for the submission of objections.

The Court has set a hearing on the Motion to Approve the Settlement for Friday, July 8, 2016 at 10:00 am. Any party wishing to file an objection to the settlement must do so no later than Wednesday, May 18, 2016, and must do so in accordance with the requirements established by the Court in its Scheduling Order................................

Thursday, 7 April 2016

Like many other Ponzi schemes, R. Allen Stanford’s operated by selling Certificates of Deposit and paying an initial group of victims a high return using subsequent investors’ money, all the while taking large portions of the investment funds for himself and his various entities (the “Stanford Entities”). While the Ponzi scheme’s perpetrator and many of his associates were sentenced to prison, hundreds of civil suits were filed in various courts that related to and stemmed from the Stanford Ponzi scheme.

More than seven years ago, Ralph Janvey (“Janvey”) was appointed Receiver for the Stanford Entities and tasked with recovering as much money as possible from the $7.2 billion Ponzi scheme that defrauded over 18,000 people and returning that money to the investors. To achieve this aim, one tool Javney uses is the filing of clawback suits against those companies who were paid by the Stanford Entities but provided no real value in return.

The Golf Channel Case

The Stanford Entities heavily invested in and marketed through various sporting channels and events. The Stanford International Bank became the chief sponsor of the Stanford St. Jude’s Championship, a PGA Tour event that was held annually in Memphis, Tennessee and broadcast by The Golf Channel, Inc. (“The Golf Channel”).............